Question

_______ is an accounting concept.

• A. Consistency
• B. Conservatism
• C. Money measurement
• D. All of the above

Answer 1

The correct option is D All of the above

The basic accounting concepts are referred to as the fundamental ideas or basic assumptions underlying the theory and practice of financial accounting, and are broad working rules for all accounting activities and developed by the accounting profession. The important concepts are:

1. Business entity

2. Money measurement

3. Going concern

4. Accounting period

5. Cost

6. Dual aspect (or Duality)

7. Revenue recognition (Realisation)

8. Matching

9. Full disclosure

10. Consisteny

11. Conservatism (Prudence)

12. Materiality

13. Objectivity